Ploughing cash into the community

Residents of Brighton and Hove have ploughed £1.2 million into community projects and businesses since 2012. Business editor FINN SCOTT-DELANY finds out which groups are spearheading the positive investment revolution.

FORWARD-thinking places like Brighton and Lewes are leading a revolution in a new type positive investment.

Residents are not just looking to make a fast buck, but are putting their capital into social and environmental business.

Those are the findings of the Make Money Do Good report by Ethex, the online exchange for positive investments.

Launched to coincide with Good Money Week, the report reveals local community-owned renewable energy schemes have played a major role in making Brighton and Lewes leading hotspots in the trend.

One of the most notable examples is Ovesco, created by Transition Towns Lewes, which in 2011 installed the UK’s first ever community owned 92kW solar power station on the roof of Harveys Brewery, subsequently raising a further £70,000 across three other projects. Meanwhile the Brighton Energy Co-operative has raised £630,000 to install solar panels on roofs across the city.

As well as community owned renewable energy, positive investors in Brighton have invested in amenities that support the local community, such as the Exeter Street Community Hall and The Bevy pub. In Lewes, the community-owned football club, The Rooks, raised more than £200,000 from supporters to build an all-weather pitch to provide sporting opportunities for young people.

Paul Bellack, director of Ovesco, the Lewes based community renewable energy company, is a former fund manager turned social entrepreneur. A positive investor for 15 years, Paul has been involved with Good Energy, the Ethical Property Company, and Communities for Renewables.

‘Business can be ethical’ He said: “As an entrepreneur I get excited about supporting social businesses, and I want to show that business does not have to be dirty – a business can be ethical and work well too. It is important to have a sustainable model that can produce not only a social return as well as a financial one.

“I’m passionate about the environment, and particularly interested in renewable energy investments. It make sense, they’re quite easy to understand and less risky, with a relatively straightforward income. But I’m also interested in investing in other business models that are ethical as well.

“As a fund manager in the corporate world I was disconnected from the impact that my investments might have. Ethical funds weren’t really around in those days. I now want to use my skills and knowledge in a more social way to have a positive impact in the world while making a reasonable return.”

Ethex is a not-for-profit online web portal for ethical savings and investments.

During its first 20 months it has grown from zero to £5.97 million of positive investment on its platform.

Types of investment include fair trade, renewable energy, tackling poverty, organic farming, community shops and pubs, sustainable forestry, green transport, organic food and farming and social property.

Jamie Hartzell, founder and managing director of Ethex, said: “Brighton and Lewes are at the forefront of a movement where people are investing their money to create environmental and social change in their community. “A growing number of people are taking control of their money and making it do good, choosing to save and invest directly in businesses that deliver not only a financial return but also demonstrable benefit to society.

“Positive investing is emerging as a broad and unstoppable movement, a popular response to the financial crisis. “People today want a more direct and immediate relationship with financial institutions that can be trusted, and that are transparent and accountable.”

Ovesco has been described as at “at the forefront of the community energy revolution” and has had £500,000 of investment from 250 mostly Lewes residents.

The Ouse Valley Energy Services Co (Ovesco) recently won the 2014 Armstrong Ashden Award for Community Energy with £10,000 prize money going towards new projects in the district.

It was formed by members of progressive environmental group Transition Town Lewes in 2007 and gives residents a stake in locally-generated renewable power.

Director Chris Rowland was inspired by radical philosopher and sometime Lewes resident Thomas Paine, whose words are engraved on the Lewes Pound: “We have it in our power to build the world anew.”

The company has installed solar panels on the roofs of two schools, a farm, a nursery as well as Harveys Brewery, with more than 250 shareholders benefitting.

Community energy Community energy is also becoming a popular prospect to politicians as well as investors, with energy minister Ed Davey expected to visit Ovesco next week.

Chris Rowland said: “We’ve done surveys and we’ve found most people invest not solely because of financial return but because they wanted to do something good and reduce the effects of climate.

“We see cooperatives as a good ethical investment which will provide renewable for the future.

“People are supporting a local business while reducing energy consumption.”

As well as working with local schools and farmers, Ovesco is mentoring other community energy projects in Sussex, in Hassocks, Eastbourne, Rye, Forest Row and Chichester.

Mr Rowland added: “We want to scale up what we’re doing and train others. We have no ambition to become the sole energy provider in Sussex.

“If you look at Germany there’s been a rapid rise in the number of energy co-ops and a move away from large companies as it moves towards a lower carbon economy.

“We want to see a less centralised energy economy where more is distributed locally.”

Another example of locally distributed power is Brighton Energy Co-operative.

Funded by members it has built more than 500kWp of new solar in the past few years, making it the largest renewables developer in the city.

Owning more than £700,000-worth of community-funded solar PV, located over five sites, its membership is still growing.

It continue to develop new renewable energy projects in the area; with members receiving 5% return on their investment as well as the 30% EIS (enterprise investments scheme) tax break on investments.

As well as utilities, communities are taking control of local amenities and safeguarding them for the future.

In early 2012 Exeter Street Community Hall was put up for sale by the Church.

A group of residents decided they did not want to find developers moved in and regretting the loss of a precious community space a few years down the line with.

£180,000 raised After eighteen months of campaigning and five months of fundraising the Prestonville community raised £180,000 and bought the hall as community asset “for all of us and future generations to enjoy for years to come”.

The campaign picked up awards for its achievements along the way.

The directors of the community stand down every year for a re-election vote while the hall is run by a 50-strong core group who all give their time up voluntarily.

Another space reclaimed by the community is The Bevy.

In May 2010 the Bevendean pub – the only local pub for Mouslecoomb and Bevendean estates and the 18,000 population – was closed following a string of brawls and anti-social behaviour.

Four years later the goal of turning the once violent place into a vibrant community hub for two of the most deprived housing estates in Britain is close to reality.

After a tireless volunteer effort the pub is to re-open before Christmas as a hub people will want to live close to, a cafe that will draw people out of their homes, a place to eat that will stop people going into town and a facility to provide training and experience to our young people.

Chairman Warren Carter said: “When people buy shares it makes it the people’s pub. They get a seat at the AGM. It’s a social investment. It makes it their place.

“The money is obviously really important but the social capital they get out of it is as important. We’ve got customers before we’ve even opened.

“Living on the estate doesn’t always feel like being in Brighton, it can be very isolating.

“The Bevy is going to be a massive change, a real shot in the arm. I can’t wait to be able to pop in and have one pint and go home, rather than have to get a taxi into town.”

He added: “I think The Bevy and Saltdean Lido and Exeter Street Hall are templates of the shape of things to come.

“Council services are going to be decimated and local communities are going to have to be much more resilient.”

Another recipient of positive investment is The Ethical Property, which provides office, event and retail space to charities, social enterprises, voluntary and campaign groups.

It has 15 centres across the UK, including four in the city - Brighton Eco-Centre, Brighton Open Market, Brighton Junction and Community Base.

The concept was first conceived in Bristol to house some of the many co-operatives springing up across the city.

Jamie Hartzell, of Ethex, helped expand the company with the help of ethical lender Triodos Bank, which also helped fund the creation of Komedia and more recently with a £1 million loan to Brighton Open Market.

The concept has also spread into the sporting world.

In 2010 Lewes FC found out first-hand about the sometimes unsustainable existence of privately-owned clubs which has wiped some off the map.

In their 125th year The Rooks narrowly fended off bankruptcy to become Lewes Community Football Club, joining AFC Wimbledon, FC United of Manchester and Exeter City as collective entities.

Avoiding an HMRC winding up order by just 24 hours, a group of fans called Rooks125 transformed the club into a Community Benefit Society, allowing fans to become owners for £30 a year.

The fee gets fans memorabilia, the satisfaction of seeing their local club alive and kicking, and a vote in the annual general meeting.

Celebrity investors The revival of the club involved comic screenwriter and actor Patrick Marber, of Alan Partridge, who enlisted celebrity friends Steve Coogan and Nigella Lawson as investors.

There are now nearly 1,000 owners who contributed a combined £25,000 to the club each year. Despite a modest £250,000 turnover, the club is embarking on a major infrastructure project including a £850,000 3G pitch, a £1 million clubhouse and a youth centre – none of which would have been possible under the previous private structure.

Marketing director Charlie Dobres said: “There’s been a huge turnaround since we turned into a community owned club.

“We chose the community investment model, partly because it’s democratic but also because it means the long term sustainability of the club.

“We’ve been able to develop new revenue streams because of the amount of goodwill we’ve generated in the town with potential new customers.

“By bringing in all these people as owners and being completely transparent our object has been all about improving the community – a far broader remit than just winning a football match.

“In business-speak we’ve diversified in terms of what we offer “We have a group of owners who are very engaged in the football club, volunteering, commercial activity – people have a genuine sense of involvement.

“Democracy creates a real sense of possibility and dynamism within the club. That empowerment is absolutely key.”